I am interested in writing naked calls or puts and doing them far enough out of the money that they retire worthless on the 3 Friday, Any advise? And is there any good charts I should be looking at.
My best advice is 'don't do it.'
Because that's not what you want to hear, I'll try to help.
1) If you are experienced with technical analysis and have a proven track record of being able to read charts and profit by using them, then use whatever methods have worked for you previously.
2) If you have no experience with charts, I'd advise getting some real experience with them before attempting to make high risk option trades that are based on your being able to read charts well.
3) If you decide to use those charts, then sell calls with a strike price above support and sell puts with a strike price below resistance.
4) Many brokers consider the sale of naked calls so risky that they do not allow any customers to adopt that strategy.
5) Other brokers do not allow beginners to sell naked options.
6) If after all that, you still want to try, be aware that you can lose a lot of money - and quickly. Do not believe that big market moves do not occur. In 2008 we had many days with huge moves.
7) My advice is to be careful. My advice includes telling you this is a dangerous strategy and that some people go broke so fast they cannot believe it.
8) In my writings, I recommend that investors NOT sell naked options.
9) Take a look at selling credit spreads. Less profit potential, but much less potential risk.
Good luck. This is not a strategy of which I approve, but you not need my approval. I hope it works for you.
Mark D. Wolfinger
The Rookie's Guide to Options:The Beginner's Handbook of Trading Equity Options